Exceeding the £50k limit

kostigovs

As more and more of my existing 1 or 2 year fixed rate bonds are maturing I find myself like many others on here no doubt not automatically letting the maturity proceeds roll over with the existing bank/society. One reason being that in many cases there are better offers around. Another reason is that I would be getting very close to the £50k limit due in part to so many mergers over the last year or so.

In searching for the best interest rates are you influenced by the £50k limit or do you breach this confident that the worst will never happen

D1zzy

Try as far as I can to stay under 50K - smaller building societies with decentish rates are useful for spreading the load ( just done Stroud & Swindon 16months @ 4.06 with my nationwide maturity) - but I am selectively over with a couple. My personal rule is not to overinvest by more than I am prepared to lose -even though I think it is unlikely that any of the major players would be allowed to fail.

Rollinghome

I go well over the limits but always calculate any additional risks versus the additional return. Just as any professional money-lender or bank would routinely do when making a loan. I'm making a loan to the bank so I take into account the interest rate, the standing of the bank I'm lending to, the period of the loan, and what access I have to remove the funds - i.e. instant or term.

Top of the list is how it would impact on me if I lost some or all of the money. D1zzy's rule of taking into account what he can lose is a good one.

bjorn_again

ING have cover of 100,000 Euro. The cover is not provided by the FSCS but by the Dutch Government. Good enough for me.

musehead

I'm not worried to go over the limit.

millwaukee

I have also gone a very large amount over the limit.
Also a ex-Icesave saver,who wants 4 or 5 accounts paying diddly squat rates??:cool:

Mr_K

If its an option for you, you could get a joint account and get £100k FSCS protection.

juicyjude

Having spent most of last summer worrying and not sleeping due to the iminent collapse of Bradford and Bingley in which if the worst happened I would lose a lot of money I just could not go through that again. OK it came good, but I did not have a crystal ball then. It all depends what you feel comfortable with.

juicyjude

I mean summer 2008

MarkyMarkD

Why get worried about it?

How many pounds has ANY UK regulated bank saver lost in the present financial crisis, irrespective of the amount they had invested?

Not a penny, that's how much.

The UK government are not going to let UK bank/building society investors lose money, when they have fully rescued everyone who invested in Northern Rock, Bradford & Bingley, Dunfermline, etc.

juicyjude

As I said it depends I suppose on what you feel comfortable with. I prefer to keep under 50k, I take Martins advice as I am a worrier!